To meet the objective of identifying and eliminating institutional racism in TDMHMR, four aims were established: (1) develop an operational definition; (2) systematic method of data collection; (3) isolate those conditions which perpetuate institutional racism; (4) develop, implement, and evaluate corrective action plans to alter those conditions. Essentially, all efforts were being directed towards developing a model of organizational diagnosis and change which can be used by this and other organizations to better conceptualize institutional racism and to combat it. Year 1 was a pilot study using four of the eight TDMHMR facilities. Diagnosis included administration of a behavioral checklist, content analysis of written policy, and a study of informal policy and norms. In Year 2, goals and recommendations designed to eliminate racism were developed and became department policy. The eight TDMHMR facilities prepared action plans responsive to the goals as part of their change effort. Emphasis will also be placed on additional analysis. Year 3 will focus on refining of a systematic method of data collection to diagnose the extent of institutional racism; monitoring and evaluation; and a feasibility study of racism in service delivery including selected community programs.